by John Darer CLU ChFC MSSC CeFT RSP CLTC
Next week attorneys Eddie Stone and Stephen G Harris reprise their debate concerning the matter of Cordero v Transamerica in a post mortem for members of the Society of Settlement Planners. Patrick Hindert of Independent Life Insurance Company again moderates.
The Cordero case is over, a failed effort notable for not targeting, as a Defendant, any structured settlement factoring companies and instead going after the life insurance companies that issued the structured settlement annuities and the qualified assignment company.
The losing cause focused on the anti-assignment provisions and there was an attempt to make that three pointer, but ended up with nothing but rim.
Hindert Said That Anti Assignment Clauses Were a Pitfall, in 2013
So in my opinion Patrick Hindert, as moderator, is an a difficult position. There are questions he should be answering. Hindert cannot hide the fact that in 2013, while still basking in the glow of the 2012 National Association of Settlement Purchasers' Alexander Hamilton Award, he participated in Strategic Capital's "Factoring Roundtable". Patrick Hindert is quoted and the still published quote excerpt says the following
"A... pitfall occurs if settlement documents include anti-assignment clauses, which do not specifically reference and permit transfers pursuant to IRC 5891 and state structured settlement protection statutes".
It should be noted that the Cordero settlement agreement does not have that language, nor would it, given that the Victims of Terrorism Tax Relief Act of 2001 (that begat IRC 5891) did not go into effect until January 2002
Hindert supported and defended the right to free alienability of property rights (in this case the right to factor)
NASP has bestowed its Alexander Hamilton Award eight times "to distinguished individuals who have supported and defended the right to free alienability of property rights." NASP considers this right to be its own cornerstone and the foundation of the structured settlement factoring business". Patrick Hindert, S2KM Ltd November 22, 2015 Source: S2KMblog.typepad.com, retrieved May 4, 2023. 630pm EDT.
Strategic Capital is a structured settlement factoring company based out of Toronto, Canada.
Hindert Cited on Anti Assignment Clauses in 2015 Structured Settlement Factoring Company Guide by Factoring Company Strategic Capital
In Strategic Capital's Structured Settlement Guide | Selling Structured Settlements Across the Country and the World, published in December 2015, it says at pages 101-102.
"As Patrick Hindert, Managing Director at S2KM Limited and a lawyer highly experienced in the settlement industry, said 'anti-assignment clauses in settlement documents are enforceable and, if enforced, could prevent structured settlement recipients from selling structured settlement payment rights'.
For example, says Strategic Capital, "one Florida court case (Rapid Settlements, LTD v Kimberly Dickerson, et al) made it to the court of appeals (and still the judge declined the sale, saying it was clearly against the agreement. But judges do not always uphold such language". Strategic Capital says "Thus, even if your paperwork has such a clause it may be worthwhile to consult with them ('Stratcap') and see what they say about your chance of approval"
Here is a link to the guide:
Stratcap does not give the cite to the 2006 case, but here it is:
District Court of Appeal of Florida,Fourth District RAPID SETTLEMENTS, LTD., Appellant, v. Kimberly DICKERSON, et al., Appellee. No. 4D05-4643 decided November 22, 2006
Obviously the 2006 decision is a Florida District Court of Appeals decision and not the 11th Circuit Court of Appeals or the New York Court of Appeals, decisions that were made by a higher courts and were more recent.
Resources for People Who Have A Structured Settlement and who:
- Are being bombarded with calls from structured settlement factoring companies
- Are being bombarded with texts from structured settlement factoring companes
- Have had some weirdo show up announced at your house who knows all about your structured settlement
- Had friends or relatives mention they were contacted by a structured settlement factoring company and now they are trying to influence you.
- Turned 18 (or will turn 18 shortly) and just found out you have "this thing called a structured settlement" and want to know "What the heck is that?"